ISTB vs. SHY
ISTB (iShares Core 1-5 Year USD Bond ETF) and SHY (iShares 1-3 Year Treasury Bond ETF) are both exchange-traded funds - ISTB is a Short-Term Bond fund tracking the BBG US Universal 1-5 Year Index (USD), while SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index. Both are passively managed. Over the past 10 years, ISTB returned 2.20%/yr vs 1.65%/yr for SHY. Their 0.73 correlation means they have sometimes moved together and sometimes differently. ISTB charges 0.06%/yr vs 0.15%/yr for SHY.
Performance
ISTB vs. SHY - Performance Comparison
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Returns By Period
In the year-to-date period, ISTB achieves a 0.63% return, which is significantly lower than SHY's 0.76% return. Over the past 10 years, ISTB has outperformed SHY with an annualized return of 2.20%, while SHY has yielded a comparatively lower 1.65% annualized return.
ISTB
- 1D
- -0.04%
- 1M
- -0.19%
- 6M
- 0.35%
- YTD
- 0.63%
- 1Y
- 2.74%
- 3Y*
- 4.99%
- 5Y*
- 1.86%
- 10Y*
- 2.20%
- ALL TIME*
- 2.01%
SHY
- 1D
- -0.01%
- 1M
- 0.07%
- 6M
- 0.55%
- YTD
- 0.76%
- 1Y
- 2.53%
- 3Y*
- 4.19%
- 5Y*
- 1.78%
- 10Y*
- 1.65%
- ALL TIME*
- 1.95%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $20.52M | $19.72M | $25.64M | |
| $257.73M | $267.74M | $273.79M |
ISTB vs. SHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 0.63% | 6.36% | 4.37% | 5.56% | -6.08% | -0.71% | 4.75% | 5.61% | 1.02% | 1.72% |
SHY iShares 1-3 Year Treasury Bond ETF | 0.76% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
Correlation
The correlation between ISTB and SHY is 0.91, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.91 |
Correlation (3Y) Balances recent behavior with more history. | 0.93 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.93 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.81 |
Correlation (All Time) Calculated using the full available price history since Oct 24, 2012 | 0.73 |
The correlation between ISTB and SHY shifts across timeframes, from 0.73 (all time) to 0.93 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
ISTB vs. SHY — Risk / Return Rank
ISTB
SHY
ISTB vs. SHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core 1-5 Year USD Bond ETF (ISTB) and iShares 1-3 Year Treasury Bond ETF (SHY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ISTB | SHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.39 | ||
| Sortino ratioReturn per unit of downside risk | -0.74 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.45 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 2.61 | 3.43 | -0.82 |
| Martin ratioReturn relative to average drawdown | 9.39 | 13.40 | -4.01 |
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Drawdowns
ISTB vs. SHY - Drawdown Comparison
The maximum ISTB drawdown since its inception was -9.34%, which is greater than SHY's maximum drawdown of -5.71%. Use the drawdown chart below to compare losses from any high point for ISTB and SHY.
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Drawdown Indicators
| ISTB | SHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.34% | -5.71% | -3.63% |
Max Drawdown (1Y)Largest decline over 1 year | -1.26% | -0.89% | -0.37% |
Max Drawdown (3Y)Largest decline over 3 years | -1.36% | -0.97% | -0.39% |
Max Drawdown (5Y)Largest decline over 5 years | -9.34% | -5.71% | -3.63% |
Max Drawdown (10Y)Largest decline over 10 years | -9.34% | -5.71% | -3.63% |
Current DrawdownCurrent decline from peak | -0.27% | -0.01% | -0.26% |
Average DrawdownAverage peak-to-trough decline | -1.21% | -0.52% | -0.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.35% | 0.23% | +0.12% |
Volatility
ISTB vs. SHY - Volatility Comparison
iShares Core 1-5 Year USD Bond ETF (ISTB) has a higher volatility of 0.48% compared to iShares 1-3 Year Treasury Bond ETF (SHY) at 0.38%. This indicates that ISTB's price experiences larger fluctuations and is considered to be riskier than SHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ISTB | SHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.48% | 0.38% | +0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 1.42% | 1.07% | +0.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.80% | 1.38% | +0.42% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.81% | 2.00% | +0.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.51% | 1.57% | +0.94% |
ISTB vs. SHY - Expense Ratio Comparison
ISTB has a 0.06% expense ratio, which is lower than SHY's 0.15% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
ISTB vs. SHY - Dividend Comparison
ISTB's dividend yield for the trailing twelve months is around 4.26%, more than SHY's 3.65% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ISTB iShares Core 1-5 Year USD Bond ETF | 3.91% | 4.12% | 3.83% | 2.97% | 2.01% | 1.69% | 2.20% | 2.75% | 2.57% | 2.06% | 1.90% | 1.58% |
SHY iShares 1-3 Year Treasury Bond ETF | 3.32% | 3.81% | 3.92% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% |
Frequently Asked Questions
With a correlation of 0.91, ISTB and SHY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
ISTB has higher volatility (0.48%) compared to SHY (0.38%). In terms of maximum drawdown, ISTB dropped -9.34% vs SHY's -5.71%.
On 10-year performance, ISTB leads with 2.20% vs 1.65% for SHY. On fees, ISTB is cheaper at 0.06% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ISTB has performed better with a 2.20% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ISTB is cheaper with a 0.06% expense ratio, compared with 0.15% for SHY.
ISTB has the higher dividend yield at 3.91%, compared with 3.32% for SHY.
ISTB is categorized as Short-Term Bond, while SHY is Government Bonds. ISTB tracks BBG US Universal 1-5 Year Index (USD), while SHY tracks ICE US Treasury 1-3 Year Index. Their fees differ too: 0.06% for ISTB and 0.15% for SHY.
SHY currently has the higher Sharpe Ratio (2.21 vs 1.83), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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